CIBC will not convert series 47 preferreds; threshold not met

By Marisa Wong

Los Angeles, Jan. 20 – Canadian Imperial Bank of Commerce said that during the conversion notice period which ran from Jan. 1 to Jan. 16, 676,578 non-cumulative rate reset class A preferred shares, series 47, were tendered for conversion on a one-for-one basis into non-cumulative floating-rate class A preferred shares, series 48.

Since less than 1 million series 48 shares would be outstanding on Jan. 31, holders of series 47 shares who tendered their series 47 shares for conversion will not be entitled to convert their shares into series 48 shares, according to a Friday press release.

As a result, series 48 shares will not be issued at this time.

On Jan. 31, CIBC will have 18 million series 47 shares issued and outstanding.

The fixed dividend rate applicable to the series 47 shares for the five-year period from and including Jan. 31, 2023 to but excluding Jan. 31, 2028 is 5.878%, payable quarterly as and when declared by the board of directors of CIBC.

The diversified financial institution is based in Toronto.

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